Bahrain: Shared Hosting and Domain Market Sector Introduction

In a recent discussion, Filip Borcov from Site.pro engaged with Sami Mohamed Ali, the Quality of Service Expert at Bahrain's .BH Registry, to explore the dynamics of Bahrain's shared hosting and domain market. They delved into topics such as the structure of the .bh and .البحرين domains, the country's impressive internet penetration rate, and the recent public availability of .bh domains. The conversation also highlighted the popularity of .com domains due to their affordability and global appeal, as well as the regulatory environment governing local hosting companies. This article provides insights from their exchange, offering valuable perspectives for businesses and individuals interested in Bahrain's evolving digital landscape.

Bahrain and Online Presence

Differences Between Domain Categories

.bh is the second-level domain representing Bahrain. It is the easiest way for any entity within Bahrain to be represented online. .com.bh is specific to companies,.net.bh is for network-related companies, and .org.bh is for organisations. Each category is designated for specific audiences.

The Internet Penetration

There are approximately 1.5 million people in Bahrain with almost 200% internet penetration, meaning the average person has around two lines. Bahrain was among the first in the region to launch full 5G coverage, which ensures excellent response in terms of Internet and services they provide.

Payment gateways

The local people ussually prefer using local payment gateways. For majority of the public there's a government based initiative called BenefitPay, which connects all the banks, as a result, all the debit card transactions go through BenefitPay platform. In addition, there are multiple international, as well as local, options for credit cards. There are two famous local gateways, CrediMax and Tap Payments, which are also international players.

Local vs global domains

There are around 6k local domain in Bahrain. Talking about popularity of local domains comparing to global ones, .com remains popular due to its global recognition and ease of access. Since .bh opened up last year, there has been about a 10% growth in its adoption. However, price and global reach often make .com a preferred choice.

Local vs. global Providers

Local people have a mix of preferences when it comes to working with local regist and hosting companies. With recent changes, there's been a noticeable move towards international register companies. However, a significant number of people still favor local businesses due to the support they offer. One of the huge challenges for the local buisnesses is the growth of .bh, so the .BH Registry want to establish .bh as the Goto domain. That is why they are promoting a lot of local registers and trying to give them the opporunity to excel in this market.

Pricing and Market Dynamics

The average price for domain registration for .bh is around 60$, it is a fix amount the .BH Registry has to charge for a domain because of government resouce.

Social media platforms like Instagram, Facebook, and WhatsApp are the main business drivers. People use these three social media platforms to provide services. .BH Registry is educating the community on the benefits of having a website for legitimacy, but adoption will take time for a while because of integration for a while.

Quality vs Price

The choise of hosting company is mainly price driven decision, because the market is new and the product has not been on the market that long. But it's worth noting that as the product stays on the market longer and longer, the users will envolve into quality.

Growth of .Bh ccTLD Sales

.BH Registry launched its domain name in 2022, initiating the expansion of local domain adoption. The six-month launch process set the stage for growing the presence of .bh domain names in Bahrain. Now, the registry is focused on increasing domain registrations and strengthening the .bh domain’s position in the market. This year, efforts are geared toward ramping up domain sales and encouraging more businesses and individuals to choose local domain names.

Website Builders in Bahrain

There aren't many influence on that matter, on the other, it's more impact of a regist driven concept. As a result, the regists are the ones who push website builders and the similar products to provide better end-user services. .BH Registry support initiatives promoting website builders, but they haven't direct influence on that.

Regulations for Local Hosting Companies

The main aim is to ensure that the local hosting companies are following the regulations of Kingdom's law. The main obligations that all registers, entities and resellers must fulfil are to comply with the country's regulations. There are no strict criterias, for example selling in local currency. An important point to emphasise, no misuse of any of the domains for cultural implications, as well as, be very careful to not impact the social norms of the country. Flexibility is allowed as long as the law is followed.

Promoting Local Domains

Local services providers often protect from global regulations or shutdowns. During Coronavirus time it was a lot of online interaction fixed in Bahrain. To consider, Coronavirus time motivated people to start building online presence, as well as, it was a lot of business which benefited from that.

Due to political issue, it could be a ramp up of local services providers. From a policy perspective, the .BH Registry has made it clear that .bh represents Bahrain, and it's a good place to showcase your product, confirming that it's a Bahraini product.

The .BH Registry are working very heavily in promoting the Arabic domains in Bahrain. Once it comes out, it will help everyone who speaks Arabic and can take advantage of the language itself by using this domain. To consider, it might be a very useful option in promoting domain.

Lessons Learned

Conclusion

Bahrain is making significant strides in promoting local domains and advancing its digital transformation. While the adoption of .bh is growing, globally recognized domains still dominate the market. To accelerate this shift, ongoing education, awareness, and the development of a supportive ecosystem are crucial. By fostering a strong digital infrastructure and encouraging local domain adoption, Bahrain can further strengthen its online presence and drive long-term success in the digital space.